SASKATOON, SK, Feb. 10 /CNW/ - Farmers of North America (FNA) has
recently taken an important step towards a new approach that will
ultimately result in more market power for farmers who choose to be
part of the FNA business alliance and together pursue the mission of
'improving farm profitability'.
Farmers who participated in any of FNA's "MPower" eligible programs
recently received over $300,000 in cash rewards in the form of a
prepaid MasterCard. This is in addition to the over $120,000 the year
before from the MPower program. These payments reflect only a very
limited number of programs in the first stage of MPower rewards.
This cash reward is the result of additional savings that are available
to FNA Members only. MPower allows FNA to deliver programs more
efficiently, allowing easier equitable management of things like
foreign exchange, freight and order volumes, getting more mileage out
of the Membership dollar. This new system is something that FNA is
making an important part of its growth strategy moving forward.
"In the past, FNA's price transparency has created a lot of tension with
some of our suppliers and disrupted relationships", comments
spokesperson Bob Friesen. The reason is that FNA Members access
products at the cost it takes to make them available and not what the
market will bear. This has been a problem for some suppliers who will
not work with us because the other people they supply have margin
targets they're trying to reach. "As a business alliance of farmers,
we continue to look for ways to maximize Members' profitability, while
at the same time, trying to develop strong relationships with
suppliers", says Friesen.
Undercutting the competition results in lower prices across the board
and so the investment of each Member in making that lower-price product
available is realized by every farmer. "We're thrilled that farmers
are saving money, but strategically, if we're trying to increase our
bargaining power with the big input manufacturers by increasing our
Membership size, we need to find a way of maintaining the value
available within the Membership", comments Friesen.
With the introduction of the MPower Cash Rewards System, FNA will be
able to maintain its low-price model, but will pass on all the
additional savings to Members in the form of a cash reward on their
MPower prepaid MasterCard, which acts to preserve Member value, not
just bring the price down for everyone.
FNA believes this will take the business alliance to a new level. "We
think that the best way to improve farm profitability is to increase
our Membership numbers and the empowerment of those Members", explains
Friesen. "If we can give suppliers the confidence that we won't
publicly disclose the final price, we'll be able to generate even more
value for Members. As Membership grows, those Members gain more and
more market power".
Farmers of North America is a farmer-member based business with the
single mission of "Improving Farm Profitability." www.fna.ca
SOURCE Farmers of North America
For further information:
Tel: (613) 230-2222
Cell: (613) 852-9711